Zoom's Global Expansion Picks Up: A Sign of More Upside?

Zoom Communications ZM has been steadily scaling beyond its pandemic-era reliance on video meetings into a diversified collaboration platform. With solutions spanning Zoom Phone, Contact Center, Workvivo and the AI-powered Zoom Workplace, the company is broadening its reach across both industries and geographies, positioning itself as a global unified communications provider.

International scaling is evident with all major regions delivering robust year-over-year growth during the second quarter of fiscal 2026. The Americas contributed $873.97 million in revenue, up 4.6% year over year. Europe, the Middle East and Africa Combined (EMEAC) added $200 million, increasing 5.7% year over year, while Asia Pacific generated $148.3 million, growing 4.2% year over year. The consistent progress across regions indicates that international markets are beginning to play a larger role in Zoom’s growth narrative, helping diversify revenue beyond its home base.

To sustain the trajectory, Zoom is broadening its go-to-market reach through new distribution channels and deepening strategic partnerships to enhance enterprise penetration globally. Expanded availability on marketplaces such as AWS is creating efficient routes into multinational accounts, while collaborations with consulting majors like PwC are accelerating adoption in complex enterprise environments. These efforts are complemented by product enhancements, including AI Companion 3.0 and departmental solutions, which are expected to resonate strongly with multinational and hybrid workforces, enhancing global adoption.

Geography-wise, the Zacks Consensus Estimates for third-quarter fiscal 2026 revenues from the Americas is pegged at $870.53 million (up 3% year over year), $194.32 million for EMEAC (up 4% year over year) and $149 million for Asia Pacific (up 3.2% year over year). With expansion momentum holding steady and enterprise upgrades gaining traction, Zoom’s global push could be a sign of more upside ahead.

How Zoom’s Rivals Are Working on Global Expansion

Zoom’s rivals, including Microsoft MSFT and Cisco CSCO, are also expanding global reach to enhance their market share in the team collaboration tool space. Microsoft continues to drive global adoption of Teams by leveraging its Office 365 ecosystem, which embeds collaboration directly into enterprise productivity workflows. Cisco is extending Webex globally, supported by investments in local data centers and hybrid work solutions that appeal to regulated industries and multinational customers. While Microsoft benefits from bundling scale and Cisco from infrastructure depth, Zoom differentiates through AI-driven innovation and platform flexibility as it builds global momentum.

Zoom’s Share Price Performance, Valuation and Estimates

Zoom shares have appreciated 2.4% year to date, while the Zacks Internet – Software industry and the Zacks Computer and Technology sector have increased 26.5% and 22.4%, respectively.

ZM’s YTD Price Performance

From a valuation standpoint, Zoom stock is currently trading at a forward 12-month Price/Sales ratio of 5.14X compared with the industry’s 6.01X. Zoom has a Value Score of D.

ZM Valuation

The Zacks Consensus Estimate for third-quarter fiscal 2026 earnings is pegged at $1.42 per share, which is up four cents over the past 30 days, indicating a year-over-year improvement of 2.9%.

Zoom Communications, Inc. Price and Consensus

Zoom Communications, Inc. price-consensus-chart | Zoom Communications, Inc. Quote

Zoom currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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